The Globe and Mail reports in its Tuesday, Nov. 24, edition that Manitoba Telecom Services (MTS) has reached a deal to sell Allstream to Zayo Group Holdings for $465-million in cash. The Globe's Christine Dobby writes that the transaction is not large enough to be reviewable under the "net benefit" test of the Investment Canada Act, but Ottawa could still block it on the grounds of national security. Allstream has a national fibre-optic network and provides communications services to enterprise clients including the Canadian government. Yet, MTS chief executive officer Jay Forbes says he is confident the sale to Zayo will pass muster with regulatory authorities and close in the first quarter of 2016. Allstream has been a drag on MTS almost since the time the company bought it in 2004 for $1.7-billion. MTS will record a loss of between $75-million and $90-million on the sale, but the price for the sale to Zayo is still slightly higher than analysts expected the division would fetch, notes Ms. Dobby. MTS expects to reap $425-million in net proceeds. Macquarie Capital Markets analyst Greg MacDonald says MTS itself is looking like a possible takeover target, with BCE and Telus as potential buyers.